New York Settles $11.3 Million Over Insurance Data Breaches

New York secures $11.3 million settlement from insurance firms over data breaches. The State of New York has reached a settlement with GEICO and Travelers, totaling $11.3 million, due to inadequate data security practices that compromised the personal information of over 120,000 residents. New York Attorney General Letitia James emphasized the importance of robust cybersecurity measures, noting that the breaches facilitated fraudulent unemployment claims during the COVID-19 pandemic. GEICO will pay $9.75 million, while Travelers will contribute $1.55 million. Both companies have agreed to enhance their cybersecurity protocols, including implementing comprehensive security programs and maintaining better access controls. The breaches were linked to cyber-attacks on GEICO’s quoting tools and a compromised agent portal at Travelers, which lacked sufficient protective measures.